YTCO(SH:600066) Xin Lang Cai Jing·2025-10-28 10:48Core Viewpoint - Yutong Bus announced that its wholly-owned subsidiary, Hong Kong Yutong International Co., Ltd., is facing arbitration initiated by China Motor Limited, claiming a total compensation of €269 million due to the termination of their distribution agreement [1][4]. Group 1: Arbitration Case Overview - The arbitration involves agreements related to bus product distribution, spare parts distribution, and after-sales services between Hong Kong Yutong and CM [2]. - CM initiated the arbitration based on the termination of the distribution agreement by Hong Kong Yutong, with the arbitration taking place in Switzerland under the International Chamber of Commerce [2]. Group 2: Background and Termination Reasons - The partnership between Hong Kong Yutong and CM began in 2010, where CM was authorized to distribute Yutong's bus products in Israel and provide after-sales services [3]. - In February 2023, Hong Kong Yutong decided to terminate the distribution agreement due to CM's issues with fulfilling the agreement [3]. Group 3: Details of the Arbitration Request - CM claims that the termination of the distribution agreement has caused it expected losses and is seeking compensation for costs incurred during after-sales services and parts sales, including interest on delayed payments and penalties, totaling €269 million [4]. Group 4: Company Impact and Response - Yutong Bus stated that it is currently reviewing the relevant agreement terms and business situations related to the arbitration to prepare adequately [5]. - The company emphasized that the arbitration has not yet gone to trial, and the outcome remains uncertain, including its potential impact on the company's profits [5].